BAFNA MOTORS PRIVATE LIMITED Vs. AMANULLA KHAN

JUDGEMENT

(1.) By virtue of this application under sec. 11 of the Arbitration and Conciliation Act, 1996 (the Act, 1996), the petitioner seeks appointment of an Arbitrator to arbitrate all the disputes and differences that have arisen between the parties in relation to the Leave and License Agreement dtd. 2/7/2012.

(2.) The application arises in the backdrop of the following facts:- a] The applicant is a company incorporated under the Companies Act, 1956. It is engaged in the business of dealership of commercial vehicles. The applicant was looking for a premises to operate a workshop. The respondent who is the holder of a leasehold land being Survey No. 193, CTS No. 416 of village Kurla, admeasuring 4664.46 sq.ft having a workshop shed at S.K. Compound, Kurla village at Kurla (the subject premises) offered the subject premises to the applicant on leave and license basis.

(3.) Pursuant to the negotiations a Leave and License Agreement came to be executed between the parties on 2 nd July, 2012. The principal terms of the agreement were that the term of license was five years from 1/7/2012 to 30/6/2017, there was to be lock-in period for two years i.e. upto 30/6/2024; thereafter either parties was entitled to revoke/terminate/determine the agreement by giving three months notice in writing to the other party; for the initial period of two years, the license fee was fixed at two lakh with gradual increase in the lincese fee at a fixed percentage; a sum of Rs.12.00 lakh was to be deposited by the licensee as a security deposit to enforce due compliance of the said agreement and the said deposit of Rs.12.00 lakhs was be returned to the licensee upon delivery of peaceful and vacant possession of the subject premises, after deductions, if any, on account of the arrears of license fee charges or expenses of repair or damages caused by licensee to the subject premises. The agreement also provided for a dispute resolution mechanism whereunder the parties agreed to refer any dispute in connection with the said License Agreement to an Arbitrator to be appointed by mutual consent.